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tell the answer first then explain why its true

7. Byron Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $100,000. The equipment will have an initial cost of $400,000 and have a 5-year life. The salvage value of the equipment is estimated to be $75,000. If the cost of capital is 10%, what is the approximate net present value? Ignore income taxes. A. $25,648 B. $100,000 C. $175,000 D. ($20,291)